Hanger, Austin, Texas, announced its financial results for the third quarter (3Q) ended September 30.
The financial highlights were as follows:
- Net revenue was $256.6 million, compared to $279.6 million for the same period in 2019, reflecting a decrease of 8.2 percent. Net same clinic revenue on a day-adjusted basis declined by 10.3 percent, due primarily to a decrease in patient volumes associated with the COVID-19 pandemic.
- Net income was $6.8 million, compared to $5.7 million for the same period in 2019. Income from operations was $13.1 million for the quarter compared to $17.4 million for the same period in 2019.
- Adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) was $27.9 million in 3Q 2020, compared to $32.6 million for the same period in 2019, a decline of $4.8 million.
- Diluted earnings per share were $0.18 for the third quarter of 2020, compared to $0.15 per diluted share for the same period in 2019. Adjusted diluted earnings per share were $0.20 for the three months ended September 30, compared to $0.25 per share for the same period a year ago.
- On September 30, Hanger had $242.3 million in liquidity, an increase of $39.6 million as compared with June 30.
Financial highlights for the nine months ended September 30, included:
- Net revenue was $723.8 million for the nine months ended September 30, compared to $797.2 million for the same period of 2019, reflecting a net revenue decline of 9.2 percent.
- For the nine-month period, acquisitions of O&P clinics that were consummated in 2019 and 2020 contributed $13.4 million of revenue growth, net of consolidations.
- Patient care net revenue declined $54.0 million, or 8.3 percent, for the year-to-date period to $598.7 million, while same clinic day-adjusted net revenue per day declined 11.2 percent. Net revenue from prosthetics, excluding acquisitions, decreased 6.6 percent on a day-adjusted basis, while orthotics net revenue, excluding acquisitions, declined by 16.3 percent, also on a day-adjusted basis.
“Our patient volumes demonstrated continued recovery in the third quarter, and this, combined with the cost containment measures we took at the start of the pandemic, contributed to a favorable earnings and cash flow performance,” said Vinit Asar, president and CEO.